BEA takes over $850m loans

The Bank of East Asia (0023) plans to acquire the commitment, rights and obligations of some loans from major shareholder Sumitomo Mitsui Banking Corporation for a total of HK$850.8 million.

The borrowers of these loans include Xinyi Group (Glass) Company, Far East Horizon (3360), Kingboard Investments and China Lesso Finance, the lender said.

It said the transactions will help promote cooperation in loan financing between BEA and SMBC and also present the bank with a good opportunity to support the development of green finance as some of the loans are being used to refinance green projects. The loans are to be transferred at the par level against their principal value, so there will be no gain or loss incurred, the lender added.